The market nosedived nearly a percent on August 13, with selling pressure in most key sectors and negative breadth. About 1,785 shares declined against 590 advancing shares on the NSE. Experts suggest that the Nifty 50 is likely to find support at 24,100, and below this, the 24,000-23,900 zone will be crucial to watch. However, resistance is expected at 24,300 on the higher side. Here are some trading ideas for the near term:
Ashish Kyal, CMT, Founder and CEO at Waves Strategy Advisors
Aurobindo Pharma | CMP: Rs 1,505.8
In the previous session, Aurobindo Pharma closed 3 percent higher during the day, reaching a lifetime high of Rs 1,533.2. On the daily chart, prices have just closed above the upward sloping channel. Follow-up buying is needed for confirmation. The stock has been trading near the upper range of the Bollinger Band since July 5, indicating strength and affirming a bullish stance. The ADX (Average Directional Index) reading is around 40, suggesting a trending market, as readings above 25 indicate strong directional strength. In short, the trend for Aurobindo is bullish. One can adopt a buy-on-dips approach with a target of Rs 1,580 followed by Rs 1,630, as long as Rs 1,440 remains protected on the downside.
Strategy: Buy
Target: Rs 1,580, Rs 1,630
Stop-Loss: Rs 1,440
Gujarat Pipavav Port | CMP: Rs 237.93
In the previous session, Gujarat Pipavav Port rose by 3.43 percent and saw a sudden surge in trading volume. The stock was in consolidation for the past month and is now trading near its resistance level at Rs 242. Follow-up buying above Rs 242 is required to confirm the positive trend in the stock. Prices are trading at the upper band of the Bollinger Band, and a close above Rs 242 will also confirm a positive breakout. Projecting the width of the consolidation pattern on the upside gives a target of Rs 268 or higher. In summary, Gujarat Pipavav is at an important juncture. A break above Rs 242 will take prices to Rs 268, as long as Rs 225 holds on the downside.
Strategy: Buy
Target: Rs 268
Stop-Loss: Rs 225
Goldiam International | CMP: Rs 240
Goldiam has been moving higher recently and is in a strong uptrend. In the previous session, it closed with a massive gain of 19.47 percent. On the daily chart, prices formed a bullish candle and closed above the Rs 217 level, confirming a breakout of the rounding bottom pattern. The ADX indicator, which indicates whether a stock is trending or in a trading range, shows a reading of 25.10, suggesting a trending market. A reading above 25 indicates strong directional strength. In short, the trend for this stock is positive. Use dips towards Rs 235-238 as a buying opportunity for a move towards Rs 260-265 levels, as long as Rs 225 holds on the downside.
Strategy: Buy
Target: Rs 260, Rs 265
Stop-Loss: Rs 225
Om Mehra, Technical Analyst at Samco Securities
BSE | CMP: Rs 2,592
BSE has established strong support around Rs 1,740 after a period of consolidation. The stock is now inching higher and sustaining above the 20 DMA (Days Moving Average), with the RSI (Relative Strength Index) holding at the 58 level. The volume participation with the price surge on the daily timeframe indicates a bullish trend likely to remain sustained. Based on the above technical structure, one can initiate a long position at CMP Rs 2,592 for a target price of Rs 2,860.
Strategy: Buy
Target: Rs 2,860
Stop-Loss: Rs 2,450
Sun Pharmaceutical Industries | CMP: Rs 1,740
Sun Pharmaceutical has given a breakout from a bullish 'soccer' pattern, with the trend remaining positive. It continues to trade above its 20 DMA, and the daily RSI sustains above the 70 level, indicating strong momentum. Minor resistance is observed around Rs 1,760; if this level is overcome, the rally is likely to continue. However, the Rs 1,710-1,730 range would be an ideal zone for accumulation. Based on the above technical structure, one can initiate a long position at CMP Rs 1,740 for a target price of Rs 1,840.
Strategy: Buy
Target: Rs 1,840
Stop-Loss: Rs 1,680
Blue Star | CMP: Rs 1,713.7
The daily and weekly timeframes both indicate that the trend remains strong in Blue Star. The previous resistance (Rs 1,670) has been taken out with strong volume, and the stock is trading above its 20 and 50-day moving averages (DMA). The RSI is holding steady above 55 levels. Based on the above technical structure, one can initiate a long position at CMP Rs 1,713.7 for a target price of Rs 1,940.
Strategy: Buy
Target: Rs 1,940
Stop-Loss: Rs 1,620
Riyank Arora, Technical Analyst at Mehta Equities
MRF | CMP: Rs 1,37,488
MRF has demonstrated a strong breakout above its anchor VWAP (Volume Weighted Average Price) resistance level of Rs 1,35,000 and continues to hold above this level. With trading volumes consistent with the 30-day average and the RSI (14) near 55, the stock shows promising momentum. It is well-positioned for an upward move toward Rs 1,42,500 and Rs 1,50,000. A stop-loss should be set at Rs 1,32,000 to manage risk effectively.
Strategy: Buy
Target: Rs 1,42,500, Rs 1,50,000
Stop-Loss: Rs 1,32,000
Birlasoft | CMP: Rs 565.65
Birlasoft has touched its immediate support level of Rs 564.60 and is holding well above it. The RSI (14) around 28 indicates oversold conditions, suggesting the potential for a rebound. The stock is expected to move higher toward the targets of Rs 605 and Rs 630, with a stop-loss at Rs 549. As the IT Index stabilizes, momentum is anticipated to return in the coming days.
Strategy: Buy
Target: Rs 605, Rs 630
Stop-Loss: Rs 549
Indian Energy Exchange | CMP: Rs 187.96
IEX has reached its anchor VWAP support level of Rs 188, offering a favourable risk-to-reward opportunity at current levels. With the RSI (14) near 53, a strong pickup in momentum is expected, driving the stock toward Rs 200 and Rs 205. A strict stop-loss should be maintained at Rs 182.50 to manage risk effectively.
Strategy: Buy
Target: Rs 200, Rs 205
Stop-Loss: Rs 182.50
Ipca Laboratories | CMP: Rs 1,396.85
Ipca Laboratories has achieved a significant breakout above its resistance level of Rs 1,383.10 and successfully closed above this mark. With trading volumes spiking to nearly 2.6 times the 30-day average and the RSI (14) approaching 78, the momentum appears strong. The stock is expected to advance toward the targets of Rs 1,450 and Rs 1,500. A strict stop-loss should be maintained at Rs 1,350 to manage risk effectively.
Strategy: Buy
Target: Rs 1,450, Rs 1,500
Stop-Loss: Rs 1,350
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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